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Restaurant chains seem to be dropping like flies lately. Red Lobster, TGI Fridays, and Boston Market are just some of the nationwide chains that have filed for bankruptcy in the last year.
Now, another restaurant is joining their ranks. Bar Louie, a gastropub chain, just filed for bankruptcy, and it’s already closing locations. Here’s what we know.
The company is deeply in debt, according to a bankruptcy filing in Delaware court earlier this week. It listed assets of $1 million to $10 million, but debts between $50 million and $100 million. To one supplier, US Foods, the chain owes $1.8 million alone. It cites factors such as rising food and labor costs and changing customer preferences for the debt.
This is actually the second time that Bar Louis has filed for bankruptcy. The first time was in early 2020, prior to the pandemic.
Bar Louie first opened in 1990 in Dallas. At its peak in 2019, there were 134 locations nationwide. When the chain filed its first bankruptcy, it closed 40 around locations. In 2023, it had about 66 locations.
There have been 14 Bar Louie locations closed over the last few months, with most of them closing abruptly last weekend. The bankruptcy filing asks permission to reject the leases of those 14 locations, which are in Tennessee, Ohio, Illinois, Missouri, Texas, Michigan, Colorado, and New Jersey.
Just because a restaurant chain files for bankruptcy protection does not mean it will inevitably close, as we saw with the bankruptcy the chain filed five years ago. But signs aren’t great, considering the recent abrupt restaurant closures, as well as the fact that two of the company’s key corporate employees have already moved on, according to the filing. If you love the Bar Louie near you, go enjoy it while you can.